Phumelela Gaming’s interim results for 1 August last year to 31 January were announced this morning and despite deteriorating economic conditions locally and a strong rand that impacted negatively on revenue from its international operations, earnings per share and headline earnings per share increased by 4% and 3% respectively.
The key financial features of the interim results:
* Earnings per share up 4% to 90.78c
* Headline earnings per share up 3% to 90.19c
* Headline earnings per share in constant currency up 26% to 109.80c
* Interim dividend per share maintained at 34c
* Sound financial position
The Group result for the six months is characterised by a pleasing performance from international revenue sources and real growth from the fixed-odds business and associate company Interbet. Tote turnover disappointed as domestic economic conditions deteriorated.
The strengthening of the Rand understated the excellence of the offshore performance in foreign currency. International operations contributed combined pre-tax income of R91.3 million, an increase of 18% at prevailing exchange rates - 38% on a constant currency basis.
Phumelela's international operations are expected to provide a foreign currency hedge and a good source of diversified income across multiple geographies.
Initiatives over many years to diversify locally, internationalise and acquire complementary growth generators is paying dividends in the form of a better spread of earnings, expanded choice for Phumelela’s many customers and an increased size of the Group from a financial and market value point of view.
Diversification has also resulted in associate income from local and international sources becoming an increasingly meaningful contributor to the Group's performance.
What has not changed is that Phumelela is, and will continue to be, the leading racecourse owner, betting operator and racing media provider in South Africa. Horseracing is at the heart of what Phumelela is and the foundation for its successful and expanding international operations.